FirstService Purchases Majority Interest in PKF

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. October 14, 2008

JANUARY 23, 2007. FirstService acquired an 80% interest in PKF Consulting and PKF Hospitality Research, the leading hotel and hospitality consulting and research firm in the United States, based in San Francisco, California. PKF's senior management team will retain the balance of the equity and will continue to operate as partners in the business going forward.

Founded in 1935, PKF provides a variety of consulting and advisory services to owners, managers and financers of hospitality properties, including feasibility studies, appraisals, brokerage, research, litigation support and asset management. The company's annual publication "Trends in the Hotel Industry" is a key management and operating guide for the hospitality industry, providing a statistical review incorporating operating and financial data on hotels in the United States. PKF employs 70 people in 10 offices across the United States with operations in San Francisco, Los Angeles, Houston, Dallas, Atlanta, Washington DC, New York, Philadelphia, Boston, Indianapolis, and Bozeman, Montana.

Concurrent with the closing, FirstService will merge the US hotel consultancy and brokerage operations of Colliers Macaulay Nicolls ("Colliers CMN") into PKF to create the largest hotel and hospitality consulting, market research and specialty brokerage operation in the United States with the ability to serve hotel and hospitality clients throughout the country. As part of the transaction, Bob Eaton will become executive managing director of PKF Capital Markets Group, the firm's hotel brokerage division, and will focus on pursuing opportunities across the consulting, research and hotel real estate transaction business lines, both in the US and internationally.

"PKF's strong reputation and expertise in the hotel and hospitality sector, combined with Colliers CMN's exceptional hotel and hospitality brokerage practice, will create the leading full-service hospitality consultancy, research and brokerage firm in the industry," said Doug Frye, President and CEO of Colliers CMN and Chairman of Colliers International. "This deal is a win for PKF, Colliers CMN and our clients. Together, we provide unmatched service excellence and market knowledge that will accelerate the success of our clients."

"PKF shareholders are excited about becoming partners with industry leaders FirstService and Colliers CMN," said Tom Callahan and Dave Arnold, Co- CEO's of PKF. "They are the ideal partners for us who can help us grow our business significantly and add value to both our clients and shareholders. This merger creates a partnership under one of the top hospitality real estate brands in the world."

Mark Woodworth, President of PKF Hospitality Research, cited the benefits that will come through working closely with the Colliers CMN dedicated research group. "Colliers CMN, like our firm, has a long standing commitment to the value of a rigorous approach to research. I look forward to collaborating with the Colliers CMN experts in the months ahead."